What’s a 5 KW Solar Inverter? Explore Types, Benefits, Disadvantages, and Cost in India in 2025

A 5 kW solar inverter is an essential component of a solar PV system as it converts DC electricity generated by the solar panels into AC power, and can theoretically handle up to 5,000 watts of load. However, in real-world cases, the power factor of home appliances ranges between 0.8 and 1. It means the actual load handling capability of a 5 kW inverter is closer to 4,000-5,000 watts. 

In terms of energy output, a 5 kW solar system, paired with a 5 kW inverter, can generate approximately 7,000 to 7,250 units of electricity annually in most Indian cities, depending on the number of sunlight hours and the quality of the panel. Hence, a 5 kW solar inverter is sufficient to supply power to all household appliances, including two 1.5-ton air conditioners, a washing machine, a refrigerator, an LED TV, a home lighting system, fans, and all common kitchen appliances. 

The most popular 5 kW solar inverter type used in installing rooftop solar panel systems for homes, housing societies, and commercial buildings is an on-grid string inverter equipped with the MPPT technology. These inverters are transformerless, come with one or two MPPT inputs, and have an efficiency rating of 96-98%. 

Not only are string inverters up to 90% cheaper than microinverters, but their MPPT algorithm ensures that solar panels deliver the maximum possible output throughout the day. Their warranties can range from 5 to 10 years, and the inverter’s lifespan is usually 10-12 years, which is shorter than the 25-year life of solar panels. 

While the main function of a 5 kW solar inverter is to convert the panel’s DC to AC, it also synchronizes voltage and current to make it safe for appliances and the grid. A grid-tied inverter will automatically shut down during a power outage to prevent backfeeding electricity into the grid, ensuring that linemen repairing faulty sites do not suffer an electric shock. This special safety feature, known as anti-islanding, is mandatory in India under MNRE guidelines.

In this blog, we will explain what a 5 kW solar inverter is, how it works, its main functions, benefits, limitations, and types and technologies. We’ll also detail the key solar inverter specifications you should check for when purchasing a 5 kW inverter for your rooftop on-grid solar system and provide an estimated cost of installing a rooftop solar system, comparing it to the money the system saves over its 25-year life through net metering and reduced electricity bills.

TL;DR Summary Box: How Much Power Can a 5 kW Solar Inverter Handle?

5 kW is the inverter’s maximum real power output. In practice, output is also limited by apparent power, which is represented in kVA and the power factor (PF). A 5 kW inverter is designed to deliver about 5,000 watts when appliances have a power factor of 1, which means they use electricity very efficiently. But most household appliances have a power factor between 0.8 and 1. 

When the power factor drops, the inverter cannot supply the full 5,000 watts because it also has a fixed current limit. In practice, it means the usable load comes down to about 4,000-5,000 watts, depending on what appliances you are running.

Here are the main topics covered in this blog:

*Please note: The price mentioned above is for SunGrow’s 5 kW solar inverter, and is meant only for illustration purposes. It may not reflect the current pricing or offers by the brand. Actual prices can change without notice due to factors such as market conditions, model variations, your city, GST inclusion, and purchase agreements. 

What is a 5 kW Solar Inverter?

A 5 kW solar inverter is the device that makes solar PV systems practical, as it converts DC input from the panels into usable alternating current. This DC-to-AC conversion is crucial because household appliances operate on alternating current (AC) only. DC is usually dangerous, so it’s not directly supplied to homes. A solar inverter converts DC from panels to AC; hence, it makes solar systems practical. 

The most commonly used solar inverters are string inverters embedded with the MPPT technology, which ensures your panels produce maximum possible output throughout the day under varying sunlight conditions. Hence, choosing a solar inverter carefully is critical, as the efficiency of a solar inverter determines the final output of the solar system, which, in turn, translates to actual solar savings over the system’s 25-year life.

How Does a 5 kW Inverter Work?

A 5 kW inverter begins operating as soon as the panels start generating DC power. Modern 5 kW on-grid solar inverters are equipped with an MPPT (Maximum Power Point Tracking) algorithm that constantly monitors the output and draws maximum power from the solar panels. 

If batteries are included because the system in question is a hybrid solar system or an off-grid solar system, the 5 kW inverter will be equipped with an in-built solar panel charge controller. If it’s not built in, a separate charge controller will be required to prevent lithium batteries from being damaged during charging. 

Here’s how a 5 kW inverter works in simple steps:

• Step 1 – The inverter receives DC power generated by the panels: The inverter first checks if the incoming DC voltage is within its safe range. If it’s too high or too low, it won’t start.
• Step 2 – MPPT finds the best output: The inverter uses MPPT (Maximum Power Point Tracking) to adjust voltage and current, ensuring the panels consistently deliver maximum power, even when sunlight levels fluctuate.
• Step 3 – DC-to-AC conversion occurs: The inverter converts the DC electricity into alternating current (AC).
• Step 4 – Excess energy grid transfer in on-grid solar systems: In an on-grid system, the inverter synchronizes with the grid’s voltage and frequency. Extra solar power flows back to the grid through a bi-directional net meter. 
• Step 5 – AC power is sent to the appliances: Your appliances first use the solar power from the inverter. If they need more than 5 kW, the extra comes from the grid.
• Step 6 – Battery charging in off-grid and hybrid solar systems: If lithium batteries are connected, the inverter directs excess solar energy to charge them during the day through a charge controller. At night or during power cuts, the inverter switches to battery mode to keep essential appliances running.
• Step 7 – Monitoring for protection and safety: During a grid failure, an on-grid solar inverter shuts down automatically to protect line workers. Hybrid solar inverters, on the other hand, switch to battery mode to keep your home running.

What Are the Functions of a 5 kW Solar Inverter?

The primary function of a 5 kW solar inverter is to convert DC power from the panels to home-ready AC power, fit for household appliances and the grid. It also manages safety and ensures the solar system runs at maximum efficiency. 

Let’s check out all the key functions a 5 kW solar inverter performs daily:

• It converts DC to AC: This is the primary job of a solar inverter. It converts DC output from the panels into alternating current (AC), the type of electricity used by all household appliances.
• Maximum Power Point Tracking (MPPT): The inverter continuously adjusts the voltage and current from the panels to ensure that even when sunlight intensity changes during the day, you still get the maximum possible power.
• Load management: The inverter prioritizes using solar electricity whenever available to run the appliances first. If the solar output from the panels is higher than your consumption, the extra electricity flows to the grid through a bi-directional net meter in an on-grid system or charges the lithium batteries in hybrid and off-grid systems.
• Grid synchronization: In grid-connected solar systems, the inverter matches the grid’s voltage and frequency before feeding power. This keeps your system safe and ensures smooth energy export.
• Battery charging and discharging in hybrid and off-grid solar systems: Off-grid and hybrid 5 kW inverters are designed to charge lithium batteries during the day, and power your home from them at night or during power cuts.
• Safety protection: The grid-connected inverter protects your home and the grid by automatically shutting down in the event of faults, overloads, or grid failures. A key feature is anti-islanding, which prevents electricity from being fed back into the grid when power is out.
• Monitoring and reporting: The best solar inverters come with displays or mobile apps that show live unit generation, daily units produced, and any error messages. This helps you track performance and savings.

5 kW Solar Inverter Specifications

The maximum nominal output AC power of a 5 kW solar inverter is 5,000 watts, and the maximum output current is 22.7 amperes. The best ones from brands like SunGrow offer safety features such as PV reverse connection protection, AC short circuit protection, leakage current protection, and grid monitoring. 

Let’s break down the solar inverter specifications you should look for when buying a 5 kW inverter into technical and product specifications for better clarity.

5 kW Solar Inverter Technical Specifications

While exact technical specifications depend on the model you purchase, here are the key specifications that good models have:

Please note: The solar inverter specifications listed above are for SunGrow’s residential string inverters. The actual specifications, including maximum efficiency and power factor, will depend on the model you buy, the brand, and the type of inverter.

5 kW Solar Inverter Product Specifications

While exact product specifications depend on the model you purchase, here are the key specifications that good models have:

Please note: The solar inverter specifications listed above are for SunGrow’s residential string inverters. The actual specifications, including night power consumption, operating temperature range, weight, protection features, and operating altitude, will depend on the model you buy, the brand, and the type of inverter.

What Are the Types and Technologies of a 5 kW Solar Inverter?

The three primary types of solar inverters are string inverters, microinverters, and power optimizers. Out of these types, string inverters are the most popular and recommended options for both residential and commercial rooftop systems. These inverters are the most affordable option, offering great efficiency on roofs that are not shaded by surrounding objects. 

The technology that most 5 kW solar inverters use nowadays is the MPPT technology. MPPT-embedded solar inverters can increase the output of the solar panels by up to 30% compared to PWM technology. 

Let’s examine all the types and technologies in detail so you can determine which one is best suited to your unique requirements. 

Types of 5 kW Inverters

The three types, as you are already aware, are string inverters, microinverters, and power optimizers. 

String inverters are up to 90% cheaper than microinverters, but shading on one panel can reduce the output of the entire string. Microinverters aren’t affected by shading because shadows on one panel don’t impact the output of other panels since each panel has its own individual microinverter. But, they’re up to 90% costlier than string inverters. 

Let’s understand all three types of inverters in detail:

• String inverters: A string inverter connects a group of solar panels to one central inverter unit. It converts the DC from the whole string into AC. The only drawback is that if one panel is shaded, the output of the entire string drops. But these inverters are up to 90% cheaper than microinverters. Hence, they’re the preferred choice for rooftop solar for housing societies, homes, and commercial buildings.
• Microinverters: A microinverter is a tiny inverter placed on the back of each solar panel in the array. This way, shadows on one panel do not affect the output of others. Microinverters improve efficiency on rooftops with partial shading. However, they’re 90% costlier than string inverters. Hence, investing in them is not recommended unless your rooftop is heavily shaded during peak sunshine hours.
• Power optimizers: Just like microinverters, power optimizers are also attached to the back of each individual solar panel. However, unlike a microinverter, which converts DC to AC on the spot, a power optimizer works like a conditioning device that conditions the DC from its respective panel and then sends it to the central string inverter for conversion into AC. While they reduce shading losses and are more affordable than microinverters, they’re still a lot more expensive and complex to set up than a string inverter. 

Here’s a snapshot of how string and microinverters truly differ from one another:

Technologies Used in 5 kW Inverters

The two technologies are PWM (Pulse Width Modulation) and MPPT (Maximum Power Point Tracking). PWM inverters are almost obsolete in India because MPPT-embedded inverters offer up to 30% higher energy output than PWM inverters. 

Let’s understand how both these technologies work:

• MPPT (Maximum Power Point Tracking): MPPT is the latest and most widely used technology. It constantly adjusts the voltage and current from solar panels, ensuring they always operate at their maximum possible power. With MPPT, a 5 kW system can generate up to 30% more energy compared to older PWM models.
• PWM (Pulse Width Modulation): PWM was the older technology used in basic inverters. It is cheaper but less efficient, as it cannot adjust to changing sunlight conditions. Most modern 5 kW inverters in India now use MPPT instead of PWM.

What is the Cost of a 5 kW Solar Inverter in India in 2025?

The cost of a 5 kW solar inverter in India depends on the brand you’re purchasing. For instance, a grid-tied 5 kW string solar inverter by SunGrow can cost ~Rs. 67,000*. Usually, the cost of a solar inverter accounts for 25-30% of the total cost of the rooftop solar system. 

*Please note: The price mentioned above is for SunGrow’s 5 kW solar inverter, and is meant only for illustration purposes. It may not reflect the current pricing or offers by the brand. Actual prices can change without notice due to factors such as market conditions, model variations, your city, GST inclusion, and purchase agreements. 

How Many Solar Panels Are Needed for a 5 kW Inverter?

The number of solar panels you need for a 5 kW inverter depends on the wattage of the panels you choose. Since a 5 kW inverter can handle up to 5,000 watts, you simply divide 5,000 by the watt rating of the panel to know how many are required.

The most recommended modules are 540Wp bifacial solar panels for residential and commercial installations, as they cost less per watt compared to lower-wattage panels, produce more output for the same space, require fewer panels to reach the desired capacity, and occupy less space. 

Here’s the formula used to estimate the number of solar panels:

Based on the formula listed above, let’s check out how many panels will be needed to build a 5 kW solar system paired with a 5 kW inverter:

What Are the Benefits of a 5 kW Solar Inverter?

A 5 kW on-grid solar inverter shuts down automatically when there’s a power outage to ensure there’s no risk of electrocution to linemen working on faulty sites when the grid is down. This safety feature is the biggest strength of a solar inverter. Besides, solar inverters make it possible to supply solar electricity straight to homes and the grid. 

Let’s check out all the benefits of a 5 kW solar inverter in detail:

• It offers efficient power conversion with MPPT technology: A solar inverter converts DC electricity from your solar panels into AC power, ensuring it draws the maximum output from the solar panels at any given time during the day. This ensures your solar system generates the maximum possible electricity. Hence, a high-efficiency 5 kW solar inverter makes sure you get maximum returns on your investment.
• It takes care of all household energy requirements: A 5 kW inverter can easily power all common household appliances, including air conditioners, refrigerators, TVs, lighting, fans, and kitchen equipment.
• Safe and reliable operation: Inverters from top brands come with built-in protections, such as overload cut-off, surge protection, and anti-islanding, which keep both your home and the grid safe.
• Long-term value: With a life of 10-12 years and a warranty of 5-10 years, a 5 kW inverter offers long-lasting performance and strong returns on your investment.

What Are the Drawbacks of a 5 kW Inverter?

One of the biggest limitations of a string inverter is that shading can affect its performance. Switching to microinverters, on the other hand, can cost up to 90% more.  

Let’s check out all the limitations of a 5 kW solar inverter in detail:

• They have a shorter lifespan than solar panels: While solar panels can last for 25+ years when maintained and cleaned properly, a solar inverter lasts 10-12 years. This means you will have to replace the inverter at least once during the system’s life. However, the ROI homeowners receive from solar is worth the investment.
• Shading losses in string inverters: In string inverters, if one panel in the string is shaded, it reduces the performance of the entire string. This makes them less efficient on rooftops where surrounding trees or buildings cast shadows. However, in such cases, you can opt for microinverters or power optimizers.
• Complex maintenance in microinverters: If you choose microinverters or power optimizers, each panel has its own device. While this reduces shading losses, it makes servicing more complicated and costly compared to maintaining a single central string inverter. 

How to Choose the Right 5 kW Solar Inverter for Your House?

Choosing the right solar inverter is one of the most important decisions for homeowners, as a good inverter can ensure that solar panels generate maximum power throughout the day, connected appliances stay safe and unaffected by voltage fluctuations, and your savings are maximized. 

Here are the key points to consider before purchasing a 5 kW solar inverter for your home.

• Check the inverter type: Decide between a string inverter, microinverters, or power optimizers. String inverters are the most affordable and reliable for Indian rooftops. Microinverters and optimizers should only be chosen if your roof is heavily shaded during peak sunshine hours. Otherwise, a string inverter is the best option, as it’s affordable and easiest to clean and maintain.
• Look for MPPT technology: Always opt for an inverter with Maximum Power Point Tracking (MPPT) technology. MPPT ensures your panels give maximum output throughout the day. 
• Match the phase requirement carefully: If your home has a single-phase connection, buy a single-phase inverter. For larger homes or commercial spaces with a three-phase supply, pick a three-phase solar inverter.
• Check efficiency rating: Choose solar inverters with an efficiency rating between 96% to 98%. Higher efficiency means less energy is wasted during the DC-to-AC conversion.
• Review warranty and lifespan: A good 5 kW inverter from premium brands normally comes with at least 5 years of warranty, which can be extended up to 10 years.
• Confirm safety features: Ensure the inverter has protections like overload cut-off, surge protection, and anti-islanding. These features protect both your home and the grid.

Cost of Installing an On-Grid Rooftop Solar System in India in 2025 vs the ROI

Installing an on-grid rooftop solar system in India is highly beneficial to homeowners because, when appropriately sized, a solar system can power all home appliances, reducing electricity bills by 90% or more, and making them zero in many cases. 

Since the system will generate free electricity for 25+ years and you won’t pay for electricity for as long as your system lasts, at the end of the system’s life, you’ll have saved tens of lakhs of rupees you would have otherwise spent on paying hefty bills.

You can use SolarSquare’s free solar energy estimator calculator to get an estimate of the cost of installing a solar system that will be able to power all your energy requirements and the solar savings it will offer in 25 years of its life. 

For demonstration purposes, here’s a tabulated snapshot of the cost of installing a 5 kW on-grid rooftop solar system in India vs the savings this system will offer in 25 years:

*Please note: The 5 kW solar panel price in India with subsidy mentioned above is indicative as of 19th September 2025 for the SolarSquare Blue 6ft variant. The actual solar plate price depends on your DISCOM charges, city, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc. Prices are subject to change. Additionally, when calculating savings, we have considered an annual tariff escalation of 3% and an annual degradation of 1%. The actual final savings from a 5 kW solar system depends on the types of solar panels you’ve installed and their efficiency, intensity of sunlight your rooftop receives, orientation of the panels and tilt angle, the pollution level and weather conditions in your city, the temperature, shadow on the roof, impact of dirt/dust, and how well you maintain your panels after installation.

Conclusion

A 5 kW solar inverter can handle between 4,000 and 5,000 watts of load, depending on the power factor of the connected appliances. When paired with a 5 kW solar system, a 5 kW grid-connected inverter can supply 7,000 to 7,250 units of electricity annually. This much power is sufficient to run even two 1.5-ton air conditioners alongside common household appliances, such as refrigerators, washing machines, and televisions. 

If you’re looking to install a rooftop solar system and have any questions about the type of inverter that’ll best suit your roof conditions and power requirements, book a free solar consultation with SolarSquare now. 

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FAQs

Q1. Who is a 5 kW inverter for?

Ans. A 5 kW inverter is best for medium to large homes, housing societies, and small businesses. It can easily handle daily household loads, including multiple air conditioners and kitchen appliances.

Q2. Can a 5 kW inverter power a washing machine?

Ans. Yes, a 5 kW inverter can easily power a washing machine alongside other heavy appliances like air conditioners, televisions, and refrigerators.

Q3. Can a 5 kW inverter produce more than 5kW of power?

Ans. No, a 5 kW inverter cannot produce more than 5 kW at any moment because that is its maximum rated capacity. Even if your solar panels generate more power, the inverter will send excess energy to the grid or store it in batteries.